With the reform of the Chinese tax system 2008, tax incentives in China have generally been eliminated. The preferential treatment for high-tech enterprises is one of the remaining incentives under the new regime. Enterprises that obtain high technology status are entitled to a pref­erential corporate income tax rate of 15%, which is substantially lower than China’s ordinary 25% corporate tax rate.

In 2008, the Ministry of Science and Technology of China, the Ministry of Finance and the State & Administration of Taxation jointly promulgated the Measures for the Recognition and Administration of High-Tech Enterprises, which strictly specify the requirements for the recognition and administration of high-tech enterprises.

Why obtain high-tech enterprise status?
High-tech Enterprise Status is awarded by the Chinese authorities to companies that consistently invest in the research and development of new technology and products or own proprietary intellectual property rights in some key areas supported by the Chinese government. High-Tech Enterprise Status can result in the following benefits for a company:

1. Enjoying a 15 percent enterprise income tax rate as opposed to a 25 percent tax rate;
2. Enjoying additional deductions in R&D costs;
3. Benefiting from above lower tax rate for a three-year validation period;
4. Obtaining investment subsidies from the government;
5. Obtaining competitive commercial bank loans; and
6. Enhancing corporate image and competitive power.

How can we help you?

1. Conducting risk assessments in respect of your present circumstances;
2. Provide advice on your capacity to obtain high-tech enterprise status;
3. Planning your application strategy;
4. Drafting and reviewing your application documents; and
5. Negotiating with the competent authorities.

Why choose Hwuason?
Put simply Hwuason’s team is one of the most experienced and highly skilled teams in China in this area. To date, we have helped more than one hundred domestic and international clients to successfully obtain high-tech enterprise status, including Harbin Embraer Aircraft Industry Co.,Ltd, China National Electric Equipment Corporation, China National Petroleum Corporation, Beijing Aerospace Propulsion Institute, China Animal Husbandry Industry Co,.Ltd, RAY KLH Technologies (Beijing) Company Limited, IMA Edwards Pharmaceutical Systems, Beijing Sino-Tech Institute of Mineral Exploration Co.,Ltd and many more.

For more information on how Hwuason's High-Tech Enterprise Status Recognition team can assist, please contact:  china@hwuason.com